Multiplex Capital is set use Germany as its platform to launch into the European market. Yesterday, the group unveiled a new €356 million ($A595 million) European property fund.
The Multiplex European Property Fund will be a diversified trust with a portfolio of 67 properties located throughout Germany valued at €356 million ($A595 million).
The portfolio has a 98.5% occupancy rate is currently occupied by blue chips tenants with a weighted average lease term of approximately 10-years. In addition, the portfolio is also weighted towards the retail sector and 84% of the properties are less than seven years old.
The properties will be managed in Luxembourg with the assistance of the vendor group, REIT AM GmbH with whom Multiplex Capital will form a long term alliance.
MEPF itself will be managed from Sydney with local support and expertise provided by the recently established team in Europe.
Multiplex Capital’s managing director Ian O’Toole said the group was delighted to establish its first European investment vehicle.
“As Germany is a significant international property market with positive indicators for future growth, we believe there will be strong investor demand for the fund.
“While this portfolio of assets is solely based in Germany, we will look to pursue investment opportunities to grow the fund within the broader European market,” he added.
Multiplex Capital’s divisional director in Europe, Kevin Murphy was instrumental in securing this off market transaction.
Murphy said whilst numerous investment opportunities exist in Europe, few meet the quality of this portfolio.
“MEPF represents the next phase of Multiplex Capital’s strategy, to build upon what is now a substantial funds management platform, creating a constellation of funds that offer a wide variety of equity participants a range of outstanding investment vehicles in a number of geographic markets,” O’Toole concluded.
Multiplex Property Trust will become a cornerstone investor in the new vehicle.
The transaction is another major milestone in the growth of Multiplex Capital and follows the successful listing of the $640 million Multiplex Acumen Prime Property Fund in September 2006.
External funds under management will increase by more than 20% to over $3.3 billion once settlement occurs with total funds under management for the Group exceeding $6 billion.
By Adam Parsons
